Been asked to get a loan against my flat. Advice needed.

tom_bombadil

Hi guys,

I could use some advice please.

One of my friends has asked me to borrow against my flat because he owes money to payday loan companies that he cant pay. He has tried to get a loan and isnt able to get one because of his poor credit rating.

What I'd like to know is:
I own my own flat outright but I am not currently working. Am I likely to get a loan?
Is there anyway out of this without him going bankrupt if I dont help him?

Let me know if more information is needed. I have only talked to him briefly about this and will be talking at length about it tomorow.

Any help/suggestions would be appreciated.

Thanks

Emmzi

read the thread on lending to friends and family

only do it if you would give it as a gift. you already know he is rubbish with money.

then give him the number of payplan.

Apples2

You really need to wake up.

You don't work so you can't repay this loan so you will lose your house. Not to say you would even get a loan of course.

Your vindictive "friend" would happily see you lose your home , as long as his stupid money problems get fobbed off onto some sucker.

There isn't a cat in hells chance your "friend" is going to repay you a single penny - How do you think he got his "poor credit rating".

lanavdt

Please please please don't do it! Like the other posters said, you'd be throwing your money away. Be sympathetic, listen to their worries and point them in a debt advice charity but do not risk your home for them

tom_bombadil

I'm being bloody stupid arent? Thanks for the wake up call. Normally I'd ask dad for advice about this stuff but I didnt want to because I know he'd go spare.

I have lent him money before and I've always got it back. I know him fairly well and I know he is trust worthy but I also know how bad he is with money. He has to learn his lesson. We tried telling him but he didnt listen.

He needs to find a way out of this on his own. I havent got much in the way of debt and what I have got will be paid off in a few months. Thanks for the advice.

Fiddlestick

If nobody else will lend to him, what does that tell you?

dealer_wins

DO NOT even think about taking out a loan on your home to lend to someone else.

A proper friend would never even ask you to do this!!!

vax2002

They will spend the money and not pay the pay day loan company one penny.
A real friend would not ask you for money.

mrcow

Yes it's a stupid idea.

But you were being nice to consider it.

But yes - it is a completely stupid idea. Don't do it. He shouldn't have asked you really.

tom_bombadil

He asking because he's desperate and he doesnt see any other option other than defaulting and going bankrupt

I've tried telling him to budget but he cant because he's borrowed more than he can pay in one month so has to borrow more. then end result is all his money goes on interest.

fatbelly

tom_bombadil wrote: »

He asking because he's desperate and he doesnt see any other option other than defaulting and going bankrupt

Then he hasn't taken proper advice. Why would a debt management plan not work? Why does it have to be bankruptcy, not an IVA or a DRO?

Tell him to get in touch with someone off this list

http://www.moneysavingexpert.com/loans/debt-help-plan#help